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DL35
Level 1

Multiple Entities

Hello,

 

I have 3 entities that flow through one another. 

 

The main entity is a trustee which files a tax return.

The second entity is a holdings which is a pass through account and is within the main entity.

The third entity is an investment which files its own tax return.

 

All three work together and transfer funds between each other regularly.

 

Initial plan was to create a QB file for the two entities that file tax returns. What is the best way to capture the transfers between entities?

 

Ex:

Distribution -> Investment

Investment -> Holdings 

Holdings -> Trustee

 

Thanks.

1 Comment 1
BigRedConsulting
Community Champion

Multiple Entities

Generally the rule is to keep each entity in it's own file for reporting and tax reasons.

Since these are different entities, I'd set each up as a company file.

 

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